Commercial Umbrella Insurance: Cost & Quotes From $16/month

Are you starting a business or already have one and must protect your investment? Commercial umbrella insurance could be the perfect fit for you. It covers any loss or damage that may occur while your business operates, even due to someone else’s negligence or carelessness. 

People purchase commercial umbrella insurance for various reasons and with different cost expectations. We will look at these and help you find the best commercial umbrella insurance. The intention is to ensure a high-risk event that will not cause any financial damage to your business. This article outlines everything you need to know about commercial umbrella insurance and how much it might cost. 

What is a Commercial Umbrella Insurance Policy?

Commercial umbrella insurance is additional liability coverage. It protects businesses from financial losses that occur from unexpected events. It offers an extra layer of protection over and above a business’s primary liability insurance policies, like professional liability, general liability, or commercial auto insurance.

Commercial umbrella insurance covers costs that exceed primary insurance policy limits. Furthermore, it can help businesses avoid devastating financial losses in the event of a lawsuit.

The cost of commercial umbrella insurance may vary depending on the business’s size, the amount of coverage needed, and the type of industry. However, it is generally affordable. 

To obtain commercial umbrella insurance, get quotes from several insurance providers and compare their coverage options and pricing. Doing so helps you get the best policy to meet your business’s needs and budget.


What is the Difference Between Commercial General Liability and Commercial Umbrella Insurance?

  • Commercial General Liability (CGL) insurance and Commercial Umbrella insurance are vital insurance coverage businesses may require to protect themselves against financial losses from accidents or lawsuits. However, there are major differences between the two policies

  • Commercial General Liability (CGL) insurance covers businesses against third-party claims for bodily injury, property damage, and advertising injuries. This umbrella liability insurance for business covers claims arising from accidents on the business premises or those caused by the business operations, such as a slip-and-fall accident in a store. The policy also covers claims related to product liability and completed operations

  • On the other hand, commercial umbrella insurance provides additional coverage beyond what is provided by CGL insurance. It is meant to protect businesses from huge losses that might be more than their primary liability policies can cover. It provides additional commercial umbrella liability coverage once the limits of the underlying policies have been exhausted. This policy can cover many risks, including bodily injury, property damage, and reputational harm

In summary, CGL insurance provides basic liability coverage to businesses, while Commercial Umbrella insurance provides additional coverage that extends beyond the limits of the primary liability policies. Businesses may purchase both policies to ensure comprehensive protection against risks and potential financial losses.

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Who Needs Umbrella Insurance and Why?

Umbrella insurance is an extra layer of liability coverage. It is a policy that offers added protection beyond what other insurance policies provide, such as auto insurance or commercial umbrella insurance for rental properties . It can be a wise investment for certain individuals and businesses, although not everyone needs an umbrella insurance policy.

People with many assets or a high earning potential should consider getting an umbrella policy. Such individuals could own a home, earn a high income, or have investments. If someone with these assets is sued for a huge amount of money and their insurance coverage is insufficient to cover the damages, they could be liable for the remaining amount. In these situations, an umbrella policy can help protect their assets.

Individuals with high-risk lifestyles may also benefit from an umbrella policy. Such people include those who engage in boating, hunting, or own certain dog breeds, which may increase their liability risk.

Additionally, individuals who work in professions like medicine, law, or finance may face higher liability risks because of the nature of their work.

Businesses with a high risk of liability claims may also benefit from umbrella insurance. This includes construction, manufacturing, or transportation businesses, where accidents and injuries are common.

An umbrella policy can offer added protection for businesses in the event of large lawsuits or settlements that exceed the limits of their primary liability policies.

Typically, a business insurance umbrella policy is suitable for individuals and businesses with large assets, high liability risks, or high earning potential. An umbrella policy protects against financial losses in the event of a large liability claim or lawsuit by providing added protection beyond what other insurance policies offer.


Why is Commercial Umbrella Policy Important?

A commercial umbrella policy is an important type of insurance that gives a business more liability protection than its basic policies can cover. A commercial umbrella insurance policy is important for businesses:


Protects against Catastrophic Events

Some things, like a lawsuit or a big accident, can be very bad for a business’s finances, like a lawsuit or a big accident. If a business doesn’t have enough insurance coverage, it may have to pay for damages or legal costs out of its own pocket.Umbrella excess liability insurance provides extra coverage above and beyond the limits of a business’s primary liability policies.Commercial umbrella liability insurance protects the business from financial losses in the event of a disaster.


Provides Added Protection for High-Risk Businesses

Certain businesses are more vulnerable to commercial liability risks than others. For example, manufacturing, construction, and transportation businesses may face a higher risk of accidents and injuries. A commercial umbrella policy can offer added protection for these high-risk businesses. It does so by increasing the coverage limits of their primary insurance policies.


Covers Claims Not Covered by Primary Policies

A business’s primary insurance policies may not cover some liability claims, leaving the business vulnerable to financial losses. For example, the business’s general liability policy may not cover the claim if it is sued for libel or slander. A commercial umbrella policy can offer coverage for these types of claims that lack the coverage of the primary policies.


Increases Coverage Limits at a Reasonable Cost

A commercial umbrella policy is typically much less expensive. Increasing the coverage limits of a business’s primary insurance policies can be preferable. It means businesses can increase their liability protection without paying higher premiums for their primary policies.


Provides Peace of Mind

When business owners and other interested parties know a business has enough liability insurance, they can relax. It can also help businesses build trust with customers who want to do business with a company that is safe from financial risks.

In short, commercial excess umbrella insurance is important for businesses because it protects them from disasters, raises their coverage limits for a reasonable price, and pays for claims that their primary policies don’t cover. Also, having enough liability insurance can give business owners and other important people peace of mind.

Cutout paper appliques of Insurance inscription under umbrella


What is Not Covered by an Umbrella Policy?

Even though an umbrella insurance policy for small business gives a business more liability coverage than its basic insurance policies, it may not cover all situations or types of claims. Here are some examples of what an umbrella policy may not cover.


Intentional Acts

An umbrella policy generally does not cover intentional acts like fraud or intentional harm. The umbrella policy will not provide coverage if a business owner or employee intentionally causes harm or damage.


Professional Liability Claims

An umbrella policy does not cover professional liability claims. It covers claims related to professional services, like negligence or failure to provide adequate advice or services.


Property Damage

Umbrella policies do not cover damage to the business’s property. This type of coverage is reserved for property insurance policies, separate from liability policies.


Contractual Obligations

If a business signs a contract that requires certain insurance coverage, an umbrella policy might not be enough to meet those obligations. Businesses need to carefully look over their contracts and make sure they have the right insurance.


What is a State Farm Commercial Liability Umbrella Policy?

State Farm offers a range of insurance products, including an umbrella liability policy designed specifically for small businesses. This policy, known as commercial excess and umbrella insurance, provides additional coverage beyond what is offered by your underlying policies, such as general liability, commercial auto, and workers’ compensation insurance.

Obtaining a commercial umbrella quote is a straightforward process with State Farm. They have experienced agents who can help you determine the appropriate level of coverage based on your business’s unique needs. This includes evaluating your risk exposure and identifying potential gaps in your existing coverage.

Business umbrella coverage is an essential component of any comprehensive risk management strategy. It can protect your business from costly lawsuits and claims that exceed the limits of your underlying policies. With a commercial umbrella policy from State Farm, you can have peace of mind knowing that your business is adequately protected against unexpected events.

In addition to general liability coverage, State Farm’s umbrella liability policy can also provide workers compensation umbrella coverage. This type of coverage can help protect your business from costly claims related to workplace injuries and illnesses.

Overall, a commercial umbrella policy from State Farm is an excellent investment providing Umbrella liability insurance for small businesses looking to protect their assets and minimize risk. With customizable coverage options and expert guidance from their agents, State Farm can help you create a tailored insurance plan that meets your unique needs and budget.

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How Much Does a Commercial Umbrella Insurance Cost?

The commercial umbrella insurance cost varies depending on several factors, such as the type of business, the level of risk associated with the industry, and the amount of commercial umbrella coverage needed. 

Most of the time, the cost of a commercial umbrella policy on a percentage of the primary liability insurance premium for the business. Such a percentage may range from 1% to 10% or more, based on the level of coverage needed.

For example, a business umbrella insurance cost for a $5 million coverage is $2,500 to $5,000 per year, based on the insurance company and the risk associated with the business. Business umbrella insurance quote is key when comparing quotes from different insurance companies and compare them to find the right coverage and price. Here’s a table showing the rates of the best companies:

Cost per Month Cost per Year Best for
NEXT $40 $480 Small business owners who need excess liability coverage beyond their primary insurance policies
Thimble $40 $480 Small businesses or independent contractors who need short-term commercial umbrella coverage for specific events or projects
Hiscox $41 $492 Small businesses that need customizable commercial umbrella coverage
Nationwide $45 $540 Small to medium-sized businesses
CoverWallet $47 $564 Comparing umbrella liability insurance quotes online
The Hartford $51 $612 Specialized business lines
Chubb $55 $660 Medium to large-sized businesses
Tivly $55 $660 Comparing umbrella liability insurance quotes over the phone
Liberty Mutual $81 $972 Liberty Mutual’s commercial umbrella insurance is best for small to medium-sized businesses

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Best Commercial Umbrella Insurance Companies 

California is a large state with numerous options for commercial umbrella insurance quotes and small business umbrella insurance. Based on customer reviews, financial strength, and coverage options, here are some of the best commercial umbrella insurance companies in California:


NEXT

Pros

  • Next Insurance offers customizable policies, so you can get the exact amount of coverage you need

  • They have a simple online application process that allows you to get a quote and purchase a policy quickly

  • Next Insurance provides affordable rates, making it a great option for small business owners

  • They have excellent customer service, with a 24/7 support team available via phone or online chat

Cons

  • Next Insurance may not be the best option for larger businesses that require higher levels of excess liability coverage

NEXT Insurance is an excellent option for small business umbrella insurance, with policies that offer up to $2 million in excess liability coverage. They provide coverage for a wide range of industries, including construction, real estate, and professional services. Next Insurance offers affordable rates and customizable policies that can be tailored to fit your specific needs.

Best for: Small business owners who need excess liability coverage beyond their primary insurance policies

Average cost: $40 per month

Our rating: 9/10


CoverWallet

Pros

  • CoverWallet offers a user-friendly online application process, making it easy to get a quote and purchase a policy

  • They partner with top-rated insurance carriers to provide customized policies for small businesses.

  • CoverWallet’s policies are affordable, making them a great option for small businesses

  • They offer a wide range of insurance products, so you can work with one company for all of your insurance needs

Cons

  • CoverWallet may not be the best option for larger businesses that require higher levels of excess liability coverage

CoverWallet is an online insurance platform that offers commercial umbrella insurance policies for small businesses. They partner with top-rated insurance carriers to provide customized policies that meet the unique needs of small businesses. CoverWallet’s policies are affordable, and they offer a user-friendly online application process.

Best for: Small businesses that need additional liability coverage beyond their primary insurance policies

Average cost: $47 per month 

Our ratings: 8/10


The Hartford

Pros

  • The Hartford offers customizable workers umbrella compensation coverage options, so you can tailor your policy to meet your specific needs.

  • Offers a broad range of insurance products, so you can work with one company for all of your insurance needs

  • Offers risk management resources and tools to help you identify and mitigate potential risks to your business

  • Has a good reputation for customer service and claims handling

Cons

  • May not be the most affordable option for commercial umbrella insurance, especially if you only need a small amount of coverage

  • The Hartford may not be the best small businesses umbrella insurance option

The Hartford is another highly-rated commercial insurance company with an A+ rating from A.M. Best. They offer umbrella excess liability coverage up to $25 million, plus various commercial insurance policies. Hartford offers risk management resources and tools to assist businesses in reducing their risk of liability claims.

Best for: Specialized business lines

 Average cost: $51 per month  

Our rating: 8/10


Tivly

Pros

  • Tivly offers affordable rates and flexible payment plans

  • Their online platform is user-friendly and easy to navigate

  • Tivly specializes in small business umbrella insurance, which allows them to focus on the unique needs of small businesses

Cons

  • Limited coverage options compared to other providers

  • May not be the best option for larger businesses that require higher coverage limits

Tivly is a newer entrant to the commercial umbrella insurance market, offering policies that are specifically designed for small businesses. They provide coverage up to $5 million and offer flexible payment plans. Tivly prides itself on providing a streamlined, easy-to-use online platform that allows businesses to get a quote and purchase a policy quickly and easily. Call now to compare quotes over the phone. 

Best for: Comparing umbrella liability insurance quotes over the phone 

Average cost: $55 per month 

Our rating: 9/10


Thimble

Pros

  • Thimble offers flexible, on-demand commercial umbrella insurance policies

  • Their simple online application process makes it easy to get a quote and purchase coverage quickly

  • Thimble offers a variety of insurance products, making it a one-stop-shop for small businesses’ insurance needs

Cons

  • Coverage limits are relatively low compared to other providers

  • May not be the best option for larger businesses with ongoing coverage needs

Thimble offers on-demand commercial umbrella insurance policies, allowing businesses to purchase coverage for specific events or projects as needed. They offer coverage up to $1 million and have a simple online application process. Thimble also offers general liability insurance, professional liability insurance, and workers’ compensation insurance.

Best for: Small businesses or independent contractors who need short-term commercial umbrella coverage for specific events or projects

Average cost: $40 per month 

Our ratings: 9/10


Hiscox

Pros

  • Hiscox offers customizable commercial umbrella insurance policies, allowing businesses to tailor their coverage to their specific needs

  • Their online application process is simple and straightforward

  • Hiscox offers a broad range of commercial insurance products, making it a one-stop-shop for small businesses’ insurance needs

Cons

  • May not be the most affordable option for small businesses on a tight budget

  • Some customers have reported difficulties with claims handling and customer service

Hiscox is a well-established commercial insurance company that offers customizable commercial umbrella insurance policies. They offer coverage up to $10 million and specialize in serving small businesses. Hiscox offers a variety of commercial insurance products, including general liability insurance, professional liability insurance, and cyber liability insurance.

Best for: Small businesses that need customizable commercial umbrella coverage

Average cost: $41 per month 

Our rating: 10/10


Nationwide

Pros

  • They have experience handling claims and providing good customer service.

  • Offers flexible umbrella workers compensation coverage limits

  • Discounts for bundling other policies in a commercial umbrella insurance quote

  • They have a variety of other insurance products, so you can work with one company for all of your insurance needs

Cons

  • Nationwide may not be the most affordable option for commercial umbrella insurance, especially if you only need a small amount of coverage

  • They may not be the best option for businesses in certain industries or with unique insurance needs, as their policies are fairly standard

Nationwide is among the best commercial umbrella insurance company. They provide a variety of commercial insurance policies, umbrella insurance included, with coverage limits up to $50 million.

Nationwide gives businesses personalized advice on risk management to help them reduce the risk of liability claims.

Best for: Small to medium-sized businesses

Average cost: $45 per month 

Our rating: 6/10


Chubb

Pros

  • Chubb offers customizable coverage options, so you can tailor your policy to meet your specific needs

  • Has broad range of insurance products, including specialized coverage for niche industries and risks

  • Has a strong financial rating and a reputation for high-quality customer service

  • Offers a global network of insurance professionals and claims adjusters, which can be beneficial for businesses with international operations

Cons

  • Chubb may not be the most affordable option for commercial umbrella insurance, especially for small businesses or those with a limited budget

  • May have stricter underwriting requirements than some other insurance companies, which could make it harder for some businesses to qualify for coverage

Chubb is a well-known commercial insurance company. They offer umbrella insurance coverage up to $100 million. However, Chubb also offers a variety of other commercial insurance policies. Chubb provides customized risk management solutions and claims services whose aim is to help businesses manage their risks.

Best for: Medium to large-sized businesses

Average cost: $55 per month 

Our rating: 8/10


Liberty Mutual

Pros

  • Liberty Mutual offers customizable coverage options, so you can tailor your policy to meet your specific needs

  • Has a good reputation for customer service and claims handling

  • Has a broad range of insurance products, so you can work with one company for all of your insurance needs

  • Offers a variety of risk management resources and tools to help you identify and mitigate potential risks to your business

Cons

  • Liberty Mutual may not be the most affordable option for commercial umbrella insurance, especially if you only need a small amount of coverage

  • May not be the best option for businesses with unique insurance needs or in certain high-risk industries

Liberty Mutual is a large commercial insurance company with an A rating from A.M. Best. They offer umbrella insurance with coverage of up to $50 million and many other types of business insurance. Liberty Mutual also offers risk management tools and resources. These packages help businesses manage their risks.

Best for: Liberty Mutual’s commercial umbrella insurance is best for small to medium-sized businesses

Average cost: $81 per month 

Our rating: 7/10

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